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The Paradigm of Consumer Behavior

The Paradigm of Consumer Behavior. How Dog Haters are like Dog Lovers. Dog Haters. Just keep ‘em alive Do it Efficiently -- Known Nutrition Function Expenditure Minimizing Behavior. Dog Hater Optimal Choices. FOC & SSOC:. Dog Hater Demand Curves. Dog Lovers. Fat ‘n Happy

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The Paradigm of Consumer Behavior

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  1. The Paradigm of Consumer Behavior How Dog Haters are like Dog Lovers Lecture 7

  2. Dog Haters • Just keep ‘em alive • Do it Efficiently -- Known Nutrition Function • Expenditure Minimizing Behavior Lecture 7

  3. Dog Hater Optimal Choices • FOC & SSOC: Lecture 7

  4. Dog Hater Demand Curves Lecture 7

  5. Dog Lovers • Fat ‘n Happy • Maximize Nutrition • Subject to an Expenditure Constraint Lecture 7

  6. Dog Lover Optimal Choices • FOC & SSOC: Lecture 7

  7. Dog Lover Demand Curves Lecture 7

  8. Dog Haters v. Dog Lovers • Haters: • Lovers: Lecture 7

  9. Dog Hater Hires a Dog Lover • Hater’s Budget becomes Lover’s Constraint • Commodity Choices are Identical (Duality) • Demand Slopes Embody Symmetry Lecture 7

  10. Dog Lovers act like Dog Haters • Envelope Theorem: • Behavioral Equivalence => LAW OF DEMAND: Lecture 7

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